QUESTION
Commercial Real Estate Contract Question
Asked on May 26th, 2015 on Real Estate - California
More details to this question:
We signed an agreement that included a tenant improvement addendum. The addendum specify that the tenant shall do the following improvement: add ductless ac units in the office area. We, the tenant, did not do so and now the landlord is demanding that we add the unit. Do they have rights to do so? Especially since we the tenant is going to be moving out in 1 week from today? Additionally, if we have to do so, does the fact that the AC Units is plural mean it is valid for the landlord to ask for 2 units?
1 ANSWER
Your rights are probably whatever the written lease provides. Most commercial leases provide that the landlord is NOT liable for damage due leaks and flooding. That's what renters' insurance is for. The lease for my office requires me to carry renters' insurance, and the landlord collects proof of insurance from me, every year.
If you don't have a lease with the building owner and someone else is your landlord, then you are subtenant. Your landlord probably has a lease with the building owner, and that lease probably has a clause like the one described above. If so, the building owner and its insurance are not going to pay you anything.
If your lease with your landlord does not have a clause like I described above, then you will probably have to sue your landlord. If your damages are not more than $10,000.00, then you can sue in small claims court.
Your lease might also have a provision shortening the time in which you must file your lawsuit or else you will lose your claim. Act on this claim rightaway.
Dana Sack
510-286-2200
Answered on May 28th, 2015 at 2:01 PM